Risk Management Policies And Processes For Managing Risks Essay

Question:

Discuss about the platforms to source the information about risk management and how it conforms to the set standards.

Answer:

The platforms to source the information about risk management and how it conforms to the set standards

The purpose of risk management usually revolves around identifying, evaluating and prioritizing risks accompanied by an effective coordination as well as the application of resources in the attempt of minimizing the predictable risks. This crucial information that pertains to the risks that are usually associated with any organization or business set up can be sourced from numerous sources. These sources can either be internal or even external with regard to the entity that is put under close scrutiny as far as risk management is concerned. These elaborate risks revolve around the factors of decision making that are not easily managed or even controlled. Some of the internal sources of information as far as risk management is concerned to revolve around the main stakeholders in a given project within the involved organization (Bessis 2015).

They help bring to light the most crucial risks associated with the current project that they are involved in. With such an elaborate enlightenment from them, the managing body takes charge in the matters relating to the effective management of those foreseen risks. Employees of a given institution can also be used as internal sources of the risk management information. In most cases, they are usually aware of the confidential information revolving around their working station and the potential risks associated with it which the management can use for the good of the organization. External sources mainly deal with the surrounding elements round about the organization which also goes on to include the various forms of nature.


Some of the outlined standards by the international organization for standardization revolving around risk management are as follows: the creation of value in the sense that the resources to be used in mitigating the projected risk are less than the consequence. This management should also incorporate human factors as possible elements of contribution in any given assessment of risk. Transparency ought to be paramount for an effective and efficient risk management. This elaborate standardization also calls for systematic and structured processes with the attempt of rolling it out in the appropriate way.

The general impact of the legislation and regulations from all levels of government with regard to business operations as well the aspect of risk management

It is very significant for a potential business owner to have a general overview in the wake of the regulations and legislation that are involved in the diverse business world. This gives them the know-how that is usually very relevant in the day to day running of a business in line with the laws of the land. These areas of the law depend on the type of the business being established. Some of these laws are employment and competition law as well as consumer rights. With such enlightenment as pertains to these laws, the business owner will get the knowledge of what is expected of his or her business entity as far as the involved states or even governments are concerned. For instance, with the employment law, the potential business owner will have a look at things to do with the minimum wages of the employees, the redundancy and termination of employment, the employees leave as well as their pensions. The consumer rights, on the other hand, revolves around the idea of the sale of goods that are of satisfactory quality as well as fit for the intended purpose. The competition law, on the other hand, deals mainly with anti-competitive agreements and the possible abuse of the dominant market position. All this awareness to the business owner will result in an improved performance and productivity of the respective business entities (Chance 2015).

10 forms of legislation or regulations that have an impact on risk management

There are numerous legislation laws that are usually associated with business setups and operations. This normally facilitates the well-being of the entity at hand in terms of effective performances and productivity. Fair trading is one such law that has to do with the fair and competitive operations of any given business setup. Contracts are also elements of legislation some of which revolve around money exchange which is legally enforceable. The privacy act, on the other hand, deals mainly with the collection and storage of the esteemed customer’s personal information. Unfair dismissal as a legislation law deals with the set and elaborate procedure to follow where the need to dismiss a worker arises. Legal obligations of marketing are also elements of legislation wherein the wake of marketing products or even services elaborate and relevant regulations have to be rolled into play.

Reasons why business organizations should develop risk management policies and processes for managing risks

The element of uncertainty that pertains to the general aspects of running a business is the propelling factor of risk management in many established organizations. This has on numerous occasions presented the need of elaborate assessment by the involved companies in the attempt of identifying the potential risks and managing them even before they materialize. This calls for a thorough knowledge of all those risks so as for the involved business associates to have well-founded options on how to deal with them in the case of their occurrences. One outright benefit of risk management is that it enhances and facilitates the laying down of objectives of any given organization (Glendon Clarke McKenna 2016).


This is usually rolled into play because if the involved company does not put into consideration the possibility of the occurrence of any risk, then it will experience a loss of direction once the risks strike which will negatively affect the overall good of the organization. Risk management results to reduced costs as the amount that a company might use in the attempt of addressing the projected risks early cannot be compared to the one used in the actual occurrence of the risk. These reduced costs facilitate the maximization of profits by the involved organizations. This elaborate management plan enhances the idea of decreasing the possibility of the negative impact of risks with an elaborate increase of the possibility of the positive impact that greatly contributes to the good of the business entity involved.

A risk management plan

Description of the risk

The organization goes by the name Global Internet and it mainly deals with the buying and selling of computers as well as their maintenance. It is situated in Houston Texas and has other shop outlets within the region. This risk management plan will be used in identifying and analyzing the effects of the uncertainties in the names of the frequent computer viruses that have been aggressively forthcoming in the recent past resulting to numerous losses within the organization. The purpose of this plan is working towards the establishment a framework of working practices relating to the introduction and incorporation of anti-virus programs in all the computer related systems within the organization (Hopkin 2017).

Proposed plan of action and the resources needed

The implementation of the plan as mentioned earlier on will be the thorough and elaborate installation of all computer related programs and systems with the antivirus software. There will be also the establishment of an elaborate outline with the set rules and guidelines in association to the processes that foreign hard disks will be exposed to before being installed in the main systems. The review and evaluation of the plan with regard to the previously used tools will still be used co-currently with the newer ones in the idea of applicability and effectiveness. There are no possible risk level changes within the organization except the positive ones revolving around good information which is extensively changing the business world.

The responsible persons involved and the expected outcomes

The remedy of this trying issue will encompass several specialists in the name software developers who will be out to prevent any future occurrences of the corrosion of the numerous computer viruses in within the systems of the organization. The expected possible outcomes are effectiveness and efficiency with regard to the performance of the numerous computer systems established within the organization.

References

Bessis, J. (2015). Risk management in banking. John Wiley & Sons.

Chance, D. M., & Brooks, R. (2015). Introduction to derivatives and risk management. Cengage Learning.

Glendon, A. I., Clarke, S., & McKenna, E. (2016). Human safety and risk management. Crc Press.

Hopkin, P. (2017). Fundamentals of risk management: understanding, evaluating and implementing effective risk management. Kogan Page Publishers.

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